Energy Vault Holdings announced the completion of its previously announced acquisition of an 850 MW battery energy storage system (BESS) development portfolio in Japan from BayWa r.e. AG, establishing the company’s operational presence in one of the world’s fastest-growing energy storage markets.
The acquisition transfers a premium Japanese energy storage portfolio along with an experienced local development team from BayWa r.e., providing Energy Vault with immediate in-country capabilities in project development, regulatory permitting, land rights management, and utility interconnections. The company said these capabilities are critical for scaling operations in Japan’s complex energy market.
The portfolio includes approximately 350 MW of advanced-stage BESS projects expected to reach Notice to Proceed in the second half of 2027, with commercial operations beginning in mid-2028. Another 500 MW of early-stage projects provides a long-term development pipeline for future growth.
Energy Vault noted that the advanced-stage projects are expected to feature three-hour storage durations, which provide greater energy capacity per megawatt than many shorter-duration battery storage projects in other markets. The company believes this configuration, combined with Japan’s relatively low financing costs, will enhance the long-term economics and value of the portfolio.
The transaction is part of Energy Vault’s broader strategy to expand its owned-asset platform and generate recurring revenue streams. Following the acquisition, the company’s global owned asset base, including acquired, under-construction, and operating projects across energy storage and AI compute infrastructure, now exceeds 1 GW.
Energy Vault said its growing portfolio is expected to support more than $180 million in annual recurring EBITDA once projects are fully constructed and operational, reinforcing the company’s transition toward a capital-efficient business model centered on recurring revenue.
The company plans to continue expanding its presence in Japan by advancing the acquired projects, evaluating additional development opportunities, and deploying energy storage solutions tailored to the country’s grid requirements, safety standards, and evolving power market needs. Energy Vault also intends to assess next-generation battery technologies and customized storage configurations designed for the Japanese market.
KEY QUOTES:
“This acquisition marks a significant step in Energy Vault’s global growth strategy and establishes our direct operating platform in one of the world’s most compelling energy storage markets. By completing this acquisition, we have secured not only a premium BESS development portfolio, but also an experienced local team from one of the most respected renewable energy platforms globally in BayWa Renewables. Japan’s need for flexible, reliable storage is accelerating, and Energy Vault is well positioned to deliver projects at scale while creating long-term, predictable value for our shareholders.”
Robert Piconi, Chairman and Chief Executive Officer, Energy Vault
“Japan is a strategically important market for energy storage, and we are pleased to have successfully transferred this high-quality portfolio to Energy Vault. This transaction reflects BayWa r.e.’s ability to originate, develop, and monetize premium renewable energy assets globally. With its integrated technology platform, execution capability, and asset ownership strategy, Energy Vault is well positioned to advance these projects and support Japan’s energy transition.”
Daniel Gaefke, Group Chief Operating Officer, BayWa r.e.
